Digital Transformation (DX)

Digital Transformation (DX)

We pursue our innerwear and other businesses globally with Japan, the United States, Europe, and China as the main foci, and our mission is "to continue to meet people's mental and physical needs as closely as possible, in order to contribute to their individuality and beauty." With the aim of putting this into practice, we have formulated "VISION 2030" to present our future vision for 2030. The vision was formulated by backcasting from long-term goals while keeping in mind the issues we face in terms of our business, customer values, and changes in society and the environment. Under "VISION 2030," we are working to establish a competitive advantage in the global market by championing digital strategies both domestically and overseas, investing in new areas of business and growth, and taking on the challenge of achieving discontinuous growth. We aim to achieve sustainable growth and increase our corporate value by producing even greater results, and will continue to move ever forward so that we evolve into a company that people expect to last for over 100 years.

DX Strategy

To transform itself into a company that can secure high profitability even in an increasingly severe external environment, Wacoal Corp. is conducting cost restructuring and also strengthening its brand power, customer loyalty, and human resources, with the aim of returning to growth. Furthermore, in order to become a new Wacoal that can respond rapidly to changes in customers and the market, we will pursue reforms such as demand-linked supply chain management so as to reconstruct the value chain into a customer-focused one that leverages digital technology. In the customer strategy we are pursuing as part of our growth strategy, we are making thorough use of digital technology to build deep, broad, and long-term relationships with our customers, and are providing each individual with the customer experience that is the best possible one for them.

Specific Initiatives for Our "Customer Strategy"

• Reconstruct the value chain to make it customer-focused. Thoroughly utilize customer data, customer feedback, and sales staff's (beauty advisors) customer service insights
• Through our 3D measurement service (SCANBE) and app (CARNET), achieve consistent and satisfying customer experiences in both real and online settings
• To maximize LTV, identify paths toward developing loyal customers, and continuously monitor management indicators

We regard our DX vision as "creating the future norm," and aim to create new value in customer experiences by imagining what will become the norm in each individual customer's future daily life. Each individual is completely different physically and mentally, so "personalization" is a key concept when considering providing new customer experiences that cater to that diversity. While responding to individual customers required a large amount of resources and faced physical limitations in the past, we believe that leveraging digital technology is now going to make these barriers surmountable. In addition to the mental and physical research data accumulated over many years at our Human Science Research & Development Center, we have built up a wealth of information assets. These include body data obtained through "SCANBE," customer feedback and purchasing information received by our stores and e-commerce sites, and customer service insights from our sales staff. By making maximum use of this data, we will aim to build deep, broad, and long-lasting relationships with customers by expanding Wacoal's business into the fields of "beauty, comfort, and health" and providing products and services that are more personalized.

DX Promotion Structure

Organization

We have established a DX Strategy Committee and are putting in place systems to achieve our DX strategy in-house and cross-departmentally, including our IT and EC departments. Our three pillars for promoting DX are customer-focused DX, and operational DX and human resource DX to support it. We believe that a DX strategy cannot be completed by a single department, and must instead be treated as a company-wide strategy. Based on this, we are executing ours through collaboration with each business, centered around the customer-focused strategy drawn up by the marketing department.

Developing and securing digital personnel

The strategic concept at the heart of our DX strategy is centered around in-house development, and limits external resources to clear areas of expertise such as IT technology. We appoint personnel primarily through in-house recruitment, and are also conducting reskilling to develop personnel with the skills necessary for business growth and new business ventures. To identify the necessary skills, the DX Strategy Committee is formulating definitions and classifications of skills based on the Digital Skill Standards. Specifically, they are focusing on the following elements: (1) Form teams centered around young members who are highly familiar with the business on the ground, have an affinity for digital technology, and are excellent at absorbing new information, etc. (2) For core positions in projects, appoint female members who can think from customers' perspectives (3) Actively utilize a personnel system that emphasizes volunteering by individuals based on their own enthusiasm

IT systems and cybersecurity

As part of the IT system environment necessary for promoting our DX strategy, customer information, purchase histories, and store visit histories from both online and offline activities are being consolidated into a cloud-based customer infrastructure and linked to our internal core systems. Through this, we are building a system that will enable us to execute customer-focused manufacturing and marketing flexibly and rapidly, in line with changes in the business environment. In addition, to address cybersecurity risks, the Corporate Ethics and Risk Management Committee has established the "Risk Management Basic Rules" with the approval of the Board of Directors. To counter cyberattacks that target personal customer information and important technical information, the Corporate Ethics and Risk Management Committee's "Subcommittee for Information Security" collects information on information security in general, investigates the current situation, and conducts analyses, etc. Based on the results, it then draws up action policies and specific countermeasures, establishes, amends, and abolishes relevant regulations, and deliberates on strategic investment projects. In addition to these activities, it also monitors the progress being made in this area. The deliberated-on policies and activities are regularly reported to the Board of Directors through the Corporate Ethics and Risk Management Committee.

DX Initiatives

Wacoal's own 3D measurement service

Focusing on the unique stress involved in face-to-face customer service for innerwear, in May 2019, we launched "SCANBE," a 3D measurement service that has revolutionized the customer experience by making it "freer and less stressful." A total of around 300,000 people have experienced the service to date (as of April 2025). In May 2023, we began linking the data to our official app, "WACOAL CARNET," making it possible to view measurement data on a smartphone. We aim to build deeper, broader, and longer-lasting connections with our customers by providing them with experiences that enable them to engage with their own body in their daily lives.

Data utilization and open innovation

1.Service

We are developing solutions that utilize body data through an open innovation scheme. In collaboration with TOPPAN Inc. and ICB Co., we launched an AI-based service called "Know Myself Skeletal Diagnosis" in March 2024. The first fee-based content to be offered as part of "SCANBE," the service had previously featured three times at pop-up stores held in Tokyo and Osaka. Its performance slots had been almost completely sold out on these occasions, and the ripple effect from this prompted a substantial increase in users of the service at other stores as well. The service has currently been rolled out to 14 stores (as of April 2025), and is leading to the creation of new value.

3.Expansion into the healthcare field

In August 2024, we were selected to be a demonstration project operator for the Ministry of Economy, Trade and Industry's "FY2023 Supplementary PHR Social Implementation Acceleration Project." As part of this, we were matched with asken Inc., the company that develops and runs the AI food management app "asken." By combining "SCANBE" with the accumulated data from "asken," we worked on creating use cases with the aim of enabling users to find out "what their body is like now" both on the inside and outside, and the aim of achieving services that provide solutions that meet their needs.Further examples of how we are pursuing creating new value in the healthcare field include opening a store in "SLOW AND STEADY"—a space for improving well-being aimed at office workers that was opened (in March 2025) in GRAND GREEN OSAKA—and developing digital solutions for "SCANBE" to follow on from "Know Myself Skeletal Diagnosis." Going forward, we will not only continue to develop products in-house, but also actively work with other companies to expand our provision of products and services based on "knowing the human body," and by doing so, enhance the value of customer experiences, expand the possibilities for B2B cocreation, and increase synergies.

Dialogue with Stakeholders

Through the "A Message from the President" section in the integrated reports, top executive himself is sending out a message promoting DX, including talking about the DX strategy and its importance. Additionally, we are striving to continuously provide information through financial results presentations and other materials, using them to disclose information on the number of people who have taken their measurements using "SCANBE" (which is part of our customer strategy utilizing DX) and on their purchasing behavior after they have done so. In addition to regular dialogue and explanations about our DX strategy through progress reports at investor meetings and through small meetings, we are also actively distributing news releases about our DX-utilizing initiatives.

External Evaluation

Certified as a DX Certified Business Operator under the DX Certification System established by the Ministry of Economy, Trade and Industry of Japan.

Wacoal Holdings was certified as a DX Certified Business Operator under the Ministry of Economy, Trade and Industry's DX Certification System in 2022. Following the initial certification, the certified status was renewed in 2024.

Wacoal Holdings selected as a "DX Stock" for the second year running

Wacoal Holdings has been selected as a "Noteworthy DX Company," a category equivalent to "DX Stock," for the third year running since 2021. This marks the second year in a row that the company has been selected as a "DX Stock," following its selection as one in 2024.